Annual report shows lowest average banking fees in six years
(23 June 2015 – Australia) Australians are using their bank transaction accounts more than ever but are paying the lowest average fees to do so in six years, according to an Australian Bankers' Association report released today.
ABA chief executive Steven Münchenberg said: "For virtually all bank customers their most regular banking experience is with their transaction account.
“Over the past six years fees from transaction accounts have halved while transaction volumes have increased by 50 percent, showing that the unit cost of transaction banking is falling rapidly.
“In 2014, the number of transactions increased by 8 percent but the total fees on these accounts did not change.
“Higher income households are paying the bulk of the fees on bank accounts,” he said.
The annual report, Fees for Banking Services, shows that total fees paid by households and businesses for banking services increased by 2.8 percent to A$12 billion in 2014.
“The growth in total fees for banking services remains low, especially when compared to the growth in banking activity.
“Fees as a proportion of bank assets, income and profits are now at a record low,” Münchenberg said.
“Additionally, the price of financial services over the past year has not increased as much as other household expenditures such as utilities, education and health.
"Households are paying the lowest amount of fees on their home loans in six years, despite the strong activity in the housing market.”
Households paid A$4.2 billion in fees for banking services in 2014, an increase of 1.5 per cent but well below the peak levels of five years ago.
“The average weekly fees paid by households was A$9. This is consistent with what we have seen over the past four years and much lower than the A$12 we were paying in 2008,” Münchenberg said.
The report also shows low growth in fees paid by businesses for banking services and that bank fees on business deposit accounts have fallen for the past seven years.
“Businesses paid A$7.8 billion in fees in 2014, an increase of 3.5 percent.
“This is largely attributed to the growth in merchant fees as a result of the increased volume of transactions over the year,” he said.
The report also looks at the growth in bank service channels, such as branches and ATMs, and the improvements in banking products and services.
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